Vodafone Idea shares slumped as much as 28.64 per cent to their lowest level recorded since 2007 on Monday. Shares of Vodafone Idea, the country’s largest wireless telecom services provider by subscriber base, declined to as much as Rs. 6.60 on the Bombay Stock Exchange (BSE), marking their lowest stock price recorded since 2007. The sharp losses in the Vodafone Idea stock price came after the telecom major reported a net loss of Rs. 4,874 crore in the April-June period. The company had posted a net profit of Rs. 256.5 crore in the corresponding period a year ago.
On the National Stock Exchange (NSE), the stock plunged to an intraday low of Rs. 6.55 during the session, down 29.18 per cent from its previous close of Rs. 9.25.
In a regulatory filing after market hours on Friday, Vodafone Idea said its revenue from operations jumped 91 per cent to Rs. 11,269.9 crore in the quarter ended June, 2019, from Rs. 5,889.2 crore in the year-ago period.
Its earnings were affected due to higher network expenses and IT outsourcing costs.
Vodafone Idea’s network expenses and IT outsourcing costs rose 13.46 per cent to Rs. 2,998.6 crore in the three-month period, the company’s balance sheet showed.
Vodafone Idea said its subscriber base declined to 320.0 million in the first quarter of the current financial year, from 334.1 million in the previous quarter. The subscriber base fell primarily “due to customer churn following the introduction of ‘service validity vouchers’ in the prior quarters”, it added.
Vodafone Idea said its ARPU or average revenue per user stood at Rs. 108, up 3.85 per cent compared to Rs. 104 in the previous quarter.
At 12:42 pm, Vodafone Idea shares traded 27.46 per cent lower at Rs. 6.71 on the BSE, underperforming the Sensex which was down 0.77 per cent.